Data Monetization in Action - sas.com€¦ · Data Monetization in Action Wednesday, ... Case...

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Data Monetization in Action

Focus Session

Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR

Dr. Barbara H. WixomPrincipal Research Scientist

Center for Information Systems Research (CISR)MIT Sloan School of Management

[email protected]; http://cisr.mit.edu/

Data Monetization in Action

Wednesday, October 22, 2014

SAS – The Premier Business Leadership Series

This research was made possible by the support of MIT CISR sponsors and patrons.

http://twitter.com/MIT_CISR

http://twitter.com/MIT_CISR

https://www.linkedin.com/company/mit-center-for-information-systems-research?trk=company_logo

https://www.linkedin.com/company/mit-center-for-information-systems-research?trk=company_logo

mailto:[email protected]



MIT CISR gratefully acknowledges the support and contributions of its Research Patrons and Sponsors.

CISR Research PatronsThe Boston Consulting Group, Inc.Gartner, Inc.

Microsoft CorporationOliver Wyman, Inc.

SAS Institute Inc.Tata Consultancy Services

MIT CISR’s Mission Founded in 1974, MIT CISR delivers

practical, research-based insights on how digitization enables enterprises to thrive in a fast-changing global economy.

MIT CISR engages its community through research, research briefings, working papers, meetings, and executive education.

2014 MIT CISR Research Projects

21st Century Businesses: A New Look and Feel

How Digitization is Driving the Next-Generation Enterprise

Best Practices in Complexity Management

Do You Have a Great Digital Business Strategy?

Tech Management: Never a Dull Moment

Engaging Boards and Executive Committees on Digitization

The IT Unit Value Proposition: Novel Approaches to Delivering Value to the Enterprise

Making Architecture Matter Beyond IT

Compliments of the Digital Economy: New Business Opportunities

Show Me the Money: Delivering Business Value through Data

Mobile First—Effectively Engaging Customers with Mobile Apps

Managing the Challenges and Opportunities of Digital Publishing

355 Main StreetNE25–7th FloorCambridge, MA 02142Ph. 617-253-2348Fax [email protected]://cisr.mit.edu

© 2014 MIT Sloan CISR1 October 2014

Aetna, Inc.AGL Energy Limited (Australia)Akamai TechnologiesAllianz Global Corporate & Specialty Allstate Insurance Co. AMP Services Ltd. (Australia)ANZ Banking Group (Australia)APM TerminalsAustralia PostAustralian Taxation OfficeBanco Bradesco S.A. (Brazil) Banco do Brasil S.A.Banco Santander (Spain)BB&TBBVA (Spain)Bemis Company, Inc.Biogen IdecBNP Paribas (France)BNY MellonBP (U.K.)BT Group (U.K.)Canada Pension Plan Investment BoardCanadian Imperial Bank of Commerce Capital One Services, LLCCaterpillar, Inc.Chevron Corp.CHRISTUS Health Chubb & SonCielo (Brazil)

Coles (Australia)Commonwealth Bank of AustraliaCredit Suisse (Switzerland)DBS Bank Ltd. (Singapore)Dunkin’ BrandsDWS (Australia)Eaton Vance ManagementEMC Corp.Equinox Ltd. (New Zealand)ExxonMobil Global Services Co.Ferrovial (Spain)Fidelity InvestmentsFOXTEL (Australia)Hitachi, Ltd. (Japan)Holcim Brasil S.A.HSBC Bank plc (U.K.)IBM CorporationInformaticaING Direct SpainInsurance Australia GroupItaú – Unibanco S.A. (Brazil)Johnson & JohnsonLeighton Holdings Ltd. (Australia)Level 3 CommunicationsLKK Health Products Group Ltd. (HK, China)MAPFRE (Spain)New Zealand Govt.—GCIO OfficeNomura Research Institute, Ltd. (Japan)Northwestern Mutual

Orange S.A.Origin Energy (Australia)Parsons BrinckerhoffPepsiCo Inc.Principal Financial Group, Inc.Raytheon CompanyReserve Bank of AustraliaRoyal Bank of CanadaRoyal Philips (Netherlands)Sabadell BankSchneider Electric Industries SASStandard & Poor’sStandard Bank Group (South Africa)State Street Corp.TD Bank (Canada)Teck Resources Ltd. (Canada)Telstra Corp. (Australia)Tenet HealthTetra Pak (Sweden)TransUnion LLCTrinity HealthU.S. Dept. of Health & Human ServicesUnum GroupUSAAVF CorporationWestpac Banking Corp. (Australia)World Bank

CISR Research Sponsors


http://cisr.mit.edu/


Methodology

Interviews with 58 business leaders at 34 organizations

conducted in 1Q 2014

Case studies on information product/service providers

– large-scale data aggregator

– digital advertising (2)

– healthcare (3)

– financial services


Data monetization

Wixom, B. H. “Cashing In on Your Data,” Center for IS Research Briefing, XIV, 8 (August 2014).

Monetization

Improve/Innovate

Asset Management

EXTERNAL

Data Monetization: Exchanging information-based products and services for legal tender or something of perceived equivalent value.


Data monetization


Monetization

Improve/Innovate

Asset Management

EXTERNAL


Owens and Minor

D. Stoller, B. Wixom, and H. Watson, “WISDOM Provides Competitive Advantage at Owens & Minor:

Competing in the New Economy, Society for Information Management (200).

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=sHKT8vGFgB1TGM&tbnid=-P2h7c0YG0eOTM:&ved=0CAUQjRw&url=http://omdiversity.com/Default.htm&ei=af5bUoKXKsetkAf3zYGoDQ&bvm=bv.53899372,d.eW0&psig=AFQjCNEOhhqXFDYPYujo8dd62lwhMgsJ4Q&ust=1381846986767849



Owens and Minor’s supply chain



Supplier Manufacturer Provider PatientOwens and Minor

Product




Owens and Minor’s supply chain



Supplier Manufacturer Provider PatientOwens and Minor

Product

Information




1997: Web Intelligence Supporting Decisions at Owens and Minor (WISDOM)

Customers

Contract Compliance

Product Standardization

Suppliers

Contract Utilization

Sales Penetration Analysis



By 1999:• More than $125,000 from

customers’ and suppliers’ use of WISDOM in 1999, with an estimated $1 million run rate projected for 2000

• A key factor in expanding existing business by over $100M

• A key factor in winning over $60M in new business


Owens and Minor

Raw Data

2001

BusinessValue

1997

1997

Enriched Data

Reporting & Analytics

Process Design

Process Execution

2004

2007

2007




Healthcare spend analytics competitive landscape


Information Products/Services

Barb Wixom, Anne Buff. And Paul Tallon, “Data Monetization : Creating and Sustaining Value,” MIT

CISR research in progress.

Prepared Data

Reported, Analyzed Information

Designed Process

Executed Process

Raw DataRaw Data


Information Products/Services



Prepared Data

Reported, Analyzed Information

Designed Process

Executed Process

Raw DataRaw Data

Control over action

BusinessValue


Partnering

Clients

Data source owners

Across internal groups

Vendors

Crowds

Industry

Academia


Partnering

Clients

– To identify problems to be

solved

– To identify outcomes/value

Data source owners

– To access core data

– To access supplement data

to improve analytical power

Across internal groups

– To develop new products

– To leverage the platform,

repackage products

– To ensure appropriate use of

platform, products

Vendors, service providers

– To acquire specialized

HW/SW/services

– To acquire non-competitive

capabilities

– To augment staff

– To develop new markets

Crowds, academia

– To generate innovative ideas

– To build marketplace skills

Industry

– To set standards

– To influence behavior


Sources of value

Platform

People Perception

Barb Wixom, Anne Buff. And Paul Tallon, “Data Monetization : Creating and Sustaining Value,” MIT CISR research in progress.

B.H. Wixom, J.W. Ross, and C.M. Beath, “Capturing Value From Big Data At comScore Through Platform, People and Perception” MIT Sloan CISR Research Briefing, Vol. XIII, No. 11, November 2013.


comScore, Inc.: platform, people, and perception

B.H. Wixom, J.W. Ross, and C.M. Beath, “Capturing Value From Big Data At comScore Through

Platform, People and Perception” MIT Sloan CISR Research Briefing, Vol. XIII, No. 11, November

2013.


Sources of value

Platform

People

DATA

Perception

Barb Wixom, Anne Buff. And Paul Tallon, “Data Monetization : Creating and Sustaining Value,” MIT CISR research in progress.

B.H. Wixom, J.W. Ross, and C.M. Beath, “Capturing Value From Big Data At comScore Through Platform, People and Perception” MIT Sloan CISR Research Briefing, Vol. XIII, No. 11, November 2013.

quality

comprehensiveness

representativeness

accessibility

size

latency


Maximizing business value

Enriched Data


Process Design

Process Execution

Raw Data

BusinessValue

Enriched Data


Process Design

Process Execution

Raw Data

BusinessValue

Control over actionFast speed to market

Strong value proposition

Continuous innovation

Industrial-strength data asset management




Sustaining advantage

Patents

Proprietary processes and technology

Market penetration

Industry or customer standardization

Brand recognition, trust

Data source access control

Embeddedness in client processes

Causal ambiguity

Dynamic capabilities




Data monetization


Monetization

Improve/Innovate

Asset Management

EXTERNAL


Contact information

Dr. Barbara Wixom

Principal Research Scientist

Center for IS Research (CISR)

Sloan School of Management

Massachusetts Institute of Technology

[email protected]

MIT CISR research is available at no charge via http://cisr.mit.edu/patrons/sas-institute/

Follow @MIT_CISR, @barbwixom on Twitter


http://cisr.mit.edu/patrons/sas-institute/


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